Summary
Keysight Technologies, Inc. (KEYS) filed an 8-K on April 3, 2017, to report a material definitive agreement. Specifically, the company entered into an underwriting agreement on March 28, 2017, to sell $700 million in aggregate principal amount of 4.60% Senior Notes due 2027. This debt issuance is being conducted under the company's effective shelf registration statement on Form S-3. The net proceeds from this offering are intended to be used in connection with the company's contemplated merger with Ixia. The underwriting syndicate includes several prominent financial institutions, including Goldman, Sachs & Co. as the representative. It's noteworthy that several of these underwriters and their affiliates have existing relationships with Keysight, including providing services under its revolving credit and term loan facilities, and some also acted as underwriters for a recent common stock offering. Goldman Sachs is also acting as a financial advisor for the Ixia merger.
Key Highlights
- 1Keysight Technologies entered into an underwriting agreement on March 28, 2017.
- 2The company plans to issue $700 million in aggregate principal amount of 4.60% Senior Notes due 2027.
- 3The offering is being conducted under an effective shelf registration statement (Form S-3 No. 333-216838).
- 4The offering is expected to close on April 6, 2017.
- 5Proceeds from the note issuance are intended to fund the contemplated merger with Ixia.
- 6The underwriting syndicate is led by Goldman, Sachs & Co. and includes other major investment banks.
- 7Several underwriters and their affiliates have existing financial relationships with Keysight, including credit facilities and advisory services for the Ixia merger.